Benchmark Crude Oil

The oil by which all other oils are judged. Literally. With more than 200 forms of crude oil, traders and other buyers / sellers need a reference point.

Randolph found a barrel of oil and Mortimer wants to buy it. To establish a fair price, they agree to use Brent Sea Crude as their benchmark crude oil. At the end of the day, they check the Intercontinental Exchange (ICE) and see that Brent Crude closed at $74.82 per barrel, which Mortimer then pays Randolph in exchange for the found barrel.